Third and final removal of debris benefit under the Mark IV ISR

There are three seperate benefits under the Mark IV ISR.  Over the past few weeks I have covered the first two and I finish it off today.

This third benefit reads:

Subject to the liability of the Insurer(s) not being increased beyond the Limit(s) of Liability already stated herein, the Insurer(s) will also indemnify the Insured for:…

(f)       costs and expenses necessarily and reasonably incurred in respect of:…

(iii)     the demolition and removal of any property belonging to the Insured which is no longer useful for the purpose it was intended, providing such demolition and removal is necessary for the purpose of the reinstatement or replacement of Property Insured under this section and is consequent upon damage to the Property Insured by a peril hereby insured against.”

If it were not for this wording, an Insurer may be required to take down and safely store any item that the Insured no longer requires, if it is in the way of the repair, even though it may be of no benefit to the Insured. No doubt commonsense would prevail, and Insurers may be willing to simply dump something rather than spend money storing it. However, this wording avoids the need for negotiation, and such property can simply be dumpedproviding such demolition and removal is necessary for the purpose of the reinstatement or replacement of Property Insured under this section and is consequent upon damage to the Property Insured by a peril hereby insured against”.

Disappointingly the benefit was removed from the Advisory version of the Mark V.

As always, to learn more, please refer to Understanding the ISR Policy which can be purchased from  http://www.lmigroup.com/content.aspx?artId=63

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